Money and Finance
For Christmas, my gift to everyone is some stock analysis reports. In this one we'll look at defense behemoth Lockheed Martin (LMT). There's a lot of questions about the fiscal cliff and how it will affect defense contractors since defense spending is targeted in the automatic spending cuts should no agreement be reached. Lockheed Martin closed trading on Monday, December 24th at $92.77.
Company Background:
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, information technology, and cyber security in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Solutions (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise F-35 Lightning II joint strike fighter; F-16 Fighting Falcon multi-role fighter; F-22 Raptor air dominance and multi-mission stealth fighter; C-130J Hercules tactical airlifter; and C-5M Super Galaxy strategic airlifter. The Electronic Systems segment provides surface ship and submarine combat systems; sea-based missile defense systems; ship systems integration; littoral combat ships; nuclear instrumentation and control systems for naval submarines, aircraft carriers, and surface warships; air and defense missile systems; air-to-ground precision strike weapons systems; tactical missiles; munitions; fire control and navigation systems for rotary and fixed-wing aircraft; manned and unmanned ground vehicles; mission operations support, readiness, engineering support, and integration services; simulation and training services; and energy programs. The IS&GS segment offers management services, information technology solutions, and advanced technology solutions. The Space Systems segment provides satellites, strategic and defensive missile systems, and space transportation systems; and space shuttle replacement services.
DCF Valuation:
Analysts expect Lockheed Martin to grow earnings 4.94% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, right around the long term inflation rate. Running these numbers through a two stage DCF analysis with a 10% discount rate yields a fair value price of $126.28. This means that at $92.77 the shares are undervalued by 26.5%.
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Money and Finance
Lockheed Martin Stock Analysis
For Christmas, my gift to everyone is some stock analysis reports. In this one we'll look at defense behemoth Lockheed Martin (LMT). There's a lot of questions about the fiscal cliff and how it will affect defense contractors since defense spending is targeted in the automatic spending cuts should no agreement be reached. Lockheed Martin closed trading on Monday, December 24th at $92.77.
Company Background:
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, information technology, and cyber security in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Solutions (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise F-35 Lightning II joint strike fighter; F-16 Fighting Falcon multi-role fighter; F-22 Raptor air dominance and multi-mission stealth fighter; C-130J Hercules tactical airlifter; and C-5M Super Galaxy strategic airlifter. The Electronic Systems segment provides surface ship and submarine combat systems; sea-based missile defense systems; ship systems integration; littoral combat ships; nuclear instrumentation and control systems for naval submarines, aircraft carriers, and surface warships; air and defense missile systems; air-to-ground precision strike weapons systems; tactical missiles; munitions; fire control and navigation systems for rotary and fixed-wing aircraft; manned and unmanned ground vehicles; mission operations support, readiness, engineering support, and integration services; simulation and training services; and energy programs. The IS&GS segment offers management services, information technology solutions, and advanced technology solutions. The Space Systems segment provides satellites, strategic and defensive missile systems, and space transportation systems; and space shuttle replacement services.
DCF Valuation:
Analysts expect Lockheed Martin to grow earnings 4.94% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, right around the long term inflation rate. Running these numbers through a two stage DCF analysis with a 10% discount rate yields a fair value price of $126.28. This means that at $92.77 the shares are undervalued by 26.5%.
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The Board of Directors at 3M Company (MMM) announced a 35% increase in the dividend last week which is amazing for a company that already boasts a $92B market cap. I last looked at 3M almost a year ago, January 2013, and felt it was a bit overvalued...
- International Business Machines (ibm) Dividend Stock Analysis
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- Becton Dickinson Stock Analysis
Since I'm really lacking on health care industry exposure it was time to start looking at some of the different companies, so today we'll look at Becton Dickinson and Company. Becton Dickinson closed trading on Monday, November 5th at $76.59....
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